| Metric (USD Million) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|
| **Oil Revenues** | 1,397  **[0001784031-23-000013_apa-20230331.htm:31]**  | 1,365  **[0001784031-23-000019_apa-20230630.htm:34]**  | 1,705  **[0001784031-23-000025_apa-20230930.htm:36]**  | N/A | 1,432  **[0001784031-24-000008_apa-20240331.htm:28]**  | 1,907  **[0001784031-24-000013_apa-20240630.htm:31]**  | 1,797  **[0002040266-24-000003_apa-20240930.htm:34]**  |
| **Natural Gas Revenues** | 242  **[0001784031-23-000013_apa-20230331.htm:31]**  | 180  **[0001784031-23-000019_apa-20230630.htm:34]**  | 236  **[0001784031-23-000025_apa-20230930.htm:36]**  | N/A | 176  **[0001784031-24-000008_apa-20240331.htm:28]**  | 135  **[0001784031-24-000013_apa-20240630.htm:31]**  | 103  **[0002040266-24-000003_apa-20240930.htm:34]**  |
| **Natural Gas Liquids Revenues** | 130  **[0001784031-23-000013_apa-20230331.htm:31]**  | 107  **[0001784031-23-000019_apa-20230630.htm:34]**  | 138  **[0001784031-23-000025_apa-20230930.htm:36]**  | N/A | 140  **[0001784031-24-000008_apa-20240331.htm:28]**  | 159  **[0001784031-24-000013_apa-20240630.htm:31]**  | 158  **[0002040266-24-000003_apa-20240930.htm:34]**  |
| **Total Production Revenues** | 1,769  **[0001784031-23-000013_apa-20230331.htm:31]**  | 1,652  **[0001784031-23-000019_apa-20230630.htm:34]**  | 2,079  **[0001784031-23-000025_apa-20230930.htm:36]**  | N/A | 1,748  **[0001784031-24-000008_apa-20240331.htm:28]**  | 2,201  **[0001784031-24-000013_apa-20240630.htm:31]**  | 2,058  **[0002040266-24-000003_apa-20240930.htm:34]**  |
| **Purchased Oil and Gas Sales** | N/A | 144  **[0001784031-23-000019_apa-20230630.htm:34]**  | 229  **[0001784031-23-000025_apa-20230930.htm:36]**  | 399  **[0001193125-23-045839_d466229dex991.htm:5]**  | N/A | 342  **[0001784031-24-000013_apa-20240630.htm:31]**  | N/A |
| **Total Revenues** | N/A | 1,796  **[0001784031-23-000019_apa-20230630.htm:34]**  | 2,308  **[0001784031-23-000025_apa-20230930.htm:36]**  | 2,472  **[0001193125-23-045839_d466229dex991.htm:5]**  | 1,951  **[0001784031-24-000008_apa-20240331.htm:28]**  | 2,543  **[0001784031-24-000013_apa-20240630.htm:31]**  | N/A |

45485d89eb02f6a8cc1f0747cbed4cb02fbbe9998c4f12497e1465e150acb436

APA Corporation is an independent energy company focused on the exploration, development, and production of natural gas, crude oil, and natural gas liquids (NGLs) through its upstream business operations in the U.S., Egypt, and the North Sea **[0001784031-24-000003_apa-20231231.htm:9]** **[0001784031-24-000003_apa-20231231.htm:64]** **[0001784031-24-000003_apa-20231231.htm:6]**. The company also engages in exploration and appraisal activities in Suriname and holds interests in Uruguay and other international locations **[0001784031-24-000003_apa-20231231.htm:9]** **[0001784031-24-000003_apa-20231231.htm:64]** **[0001784031-24-000003_apa-20231231.htm:6]**. APA generates revenue from oil, natural gas, and NGLs through customer contracts, with prices based on market-indexed rates adjusted for various factors **[0001784031-24-000003_apa-20231231.htm:129]**. In Egypt, APA operates under production-sharing contracts, assuming exploration and production costs in exchange for a share of the production **[0001784031-24-000003_apa-20231231.htm:129]**.

1. **U.S. Operations** - Engages in the exploration, development, and production of natural gas, crude oil, and NGLs within the United States.
2. **Egypt Operations** - Conducts exploration, development, and production activities under production-sharing contracts, bearing costs in exchange for a share of the production.
3. **North Sea Operations** - Involves the exploration, development, and production of natural gas, crude oil, and NGLs in the North Sea region.
4. **Exploration and Appraisal** - Focuses on exploration and appraisal activities in Suriname, with additional interests in Uruguay and other international locations.

c526a6d15e4283c72b446d13473f8573f52c54de33f12cdd79db6d40ead2e536

| Metric (in million USD) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|-------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **U.S. Total Revenue**  | 695  **[0001784031-23-000013_apa-20230331.htm:31]**  | 810  **[0001784031-23-000019_apa-20230630.htm:34]**  | 855  **[0001784031-23-000025_apa-20230930.htm:43]**  | N/A | 979  **[0001784031-24-000008_apa-20240331.htm:28]**  | 1,530  **[0001784031-24-000013_apa-20240630.htm:31]**  | 1,167  **[0002040266-24-000003_apa-20240930.htm:34]**  | N/A |
| **Egypt Total Revenue** | 722  **[0001784031-23-000013_apa-20230331.htm:31]**  | 708  **[0001784031-23-000019_apa-20230630.htm:34]**  | 805  **[0001784031-23-000025_apa-20230930.htm:43]**  | N/A | 734  **[0001784031-24-000008_apa-20240331.htm:28]**  | 746  **[0001784031-24-000013_apa-20240630.htm:31]**  | 754  **[0002040266-24-000003_apa-20240930.htm:34]**  | N/A |
| **North Sea Total Revenue** | 352  **[0001784031-23-000013_apa-20230331.htm:31]**  | 278  **[0001784031-23-000019_apa-20230630.htm:34]**  | 419  **[0001784031-23-000025_apa-20230930.htm:43]**  | N/A | 238  **[0001784031-24-000008_apa-20240331.htm:28]**  | 267  **[0001784031-24-000013_apa-20240630.htm:31]**  | 137  **[0002040266-24-000003_apa-20240930.htm:34]**  | N/A |
| **Total Revenue**       | 1,769  **[0001784031-23-000013_apa-20230331.htm:31]**  | 1,796  **[0001784031-23-000019_apa-20230630.htm:34]**  | N/A | N/A | 1,951  **[0001784031-24-000008_apa-20240331.htm:28]**  | 2,543  **[0001784031-24-000013_apa-20240630.htm:31]**  | 2,058  **[0002040266-24-000003_apa-20240930.htm:34]**  | N/A |

803774f5d18ec411591ea0c5e32c9f6213694f7b2ad089a6d55207563eef697b

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

5bb486477cad39846f8daa45c1e6098753e35ed58c831083b0f1120ed232779e

Current Assets [USD, Millions]

Cash and Cash Equivalents [USD, Millions]

Accounts Receivable [USD, Millions]

Inventory [USD, Millions]

Non-Current Assets [USD, Millions]

PP&E [USD, Millions]

Goodwill [USD, Millions]

Intangible Assets [USD, Millions]

Current Liabilities [USD, Millions]

Accounts Payable [USD, Millions]

Short-term Debt [USD, Millions]

Accrued Expenses [USD, Millions]

Non-Current Liabilities [USD, Millions]

Long-term Debt [USD, Millions]

Lease Liabilities [USD, Millions]

Deferred Tax Liabilities [USD, Millions]

Shareholders' Equity [USD, Millions]

Retained Earnings [USD, Millions]

Common Stock [USD, Millions]

Additional Paid-in Capital [USD, Millions]

a1c36b166fee0301dd66fdfede1263de2c4b53db10bad7a8c93727ce595a9d40

1. "With the third quarter showing a reduced percentage of free cash flow returned to shareholders due to timing issues with disposals, how do you plan to ensure consistent cash returns in the future, and what steps are you taking to mitigate such timing risks?"  **[APA_3406619_9]** 

2. "In integrating Callon, have you identified areas where their operational practices outperformed yours, and how are you leveraging those insights to enhance your own operations, particularly in terms of cost efficiencies and well performance?"  **[APA_3406619_13]** 

3. "Given the late-stage life cycle of your North Sea assets and the anticipated production declines, how do you plan to offset this reduction in free cash flow, and are you considering any strategic acquisitions or developments to maintain overall company growth?"  **[APA_3406619_19]** **[APA_3406619_27]** 

4. "With the significant curtailment of production due to weak Waha gas prices affecting your fourth-quarter U.S. production by **20,000 to 25,000 BOE**, what are your strategies to manage commodity price volatility and minimize its impact on your overall production and financial performance?"  **[APA_3406619_5]** 

5. "As the GranMorgu project in Suriname is not expected to contribute to production until **2028**, how are you addressing the potential gap in production growth over the next few years, and what measures are in place to mitigate risks associated with this long-term offshore development?"  **[APA_3406619_1]** **[APA_3406619_19]** 

a896c0ef72b2ed0f7efabb8771938ef95697642289ae6aab6abe0182da9a7268

| Program Details          | Program 1                  | Program 2                  |
|--------------------------|----------------------------|----------------------------|
| Approval Date            | Fourth quarter of 2021  **[0002040266-24-000003_apa-20240930.htm:32]**  | Third quarter of 2022  **[0002040266-24-000003_apa-20240930.htm:32]**   |
| End Date/Duration        | N/A                        | N/A                        |
| Total additional amount  | 40 million shares  **[0002040266-24-000003_apa-20240930.htm:32]**       | 40 million shares  **[0002040266-24-000003_apa-20240930.htm:32]**       |
| Remaining authorization  | 39.3 million shares  **[0002040266-24-000003_apa-20240930.htm:32]**     | 39.3 million shares  **[0002040266-24-000003_apa-20240930.htm:32]**     |
| Details                  | N/A                        | N/A                        |

111f93f1dbf6dffb7412ff9c9574ee02dd779a877ff40c89b5a43794cb8a111c

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

f86239ebdcf204217b712ac534c54caa2159149ede81757564a921c85f9c891e

United States

- Oil

- Natural Gas

- Natural Gas Liquids

Egypt

North Sea

Total Revenue

515004e5ed6d22e88ba91987c95b3d9575081a47bbe2400a321cad3b161c7cc0

Average Crude Oil Price Realization

Average Natural Gas Price Realization

Average NGL Price Realization

Worldwide Oil Production

Worldwide Natural Gas Production

Worldwide NGL Production

Daily BOE Production from U.S. Assets

Capitalized Exploratory Well Costs

2ae6b0e28761b219ee136e349484721b773d8cec13db377d7d88693708d54617

U.S.

Total Production Revenues

Total Revenues

7708390d94de794442265e1d1c3d9ec35758a6efdacf715c5cd3e4d8252cbbc1

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024 and FY 2024
- **Guidance**:
  1. **Capital Budget**: Increased to **$2.75 billion**.
  2. **Production Guidance**:
     - **U.S. Production**: Impact of **20,000 to 25,000 BOE** due to frac activity deferrals and planned production curtailments.
     - **North Sea Production**: Down approximately **20% year-over-year** in 2025.
  3. **Rig Count**: **8-rig program in the Permian Basin** and **12-rig program in Egypt** in 2025.
  4. **2025 Capital Budget**: **$2.2 billion to $2.3 billion** for the U.S., Egypt, and North Sea, plus **$200 million** for Suriname and **$100 million** for exploration in Alaska.
  5. **Cost Reductions**: Targeting significant reductions in 2025  **[APA_3406619_4]** **[APA_3406619_5]** **[APA_3406619_2]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024, Q4 2024, and FY 2024
- **Guidance**:
  1. **U.S. Oil Production**: Increased guidance to **150,000 barrels per day** for Q4.
  2. **Capital Expenditure (CapEx)**: Original guidance of **$2.7 billion** may trend down.
  3. **Gas Curtailments**: **90 million cubic feet per day** in the Permian, affecting **7,500 barrels per day** of NGLs.
  4. **Income from Third-Party Oil and Gas**: Increased to **$350 million**.
  5. **U.S. Tax Accruals**: **$95 million** for the year.
  6. **Egypt Production**: Expected to remain flat.
  7. **North Sea Production**: Unchanged full-year guidance, with a Q3 decrease and Q4 rebound.
  8. **Free Cash Flow**: Anticipated substantial increase in the second half  **[APA_3396134_1]** **[APA_3396134_4]** **[APA_3396134_2]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024 and FY 2024
- **Guidance**:
  1. **Gas and NGL Production Curtailment**: **50 million cubic feet per day** of gas and **5,000 barrels per day** of NGLs.
  2. **Income from Third-Party Oil and Gas**: **$230 million** for the year.
  3. **U.S. Oil Production**: **152,000 barrels per day** in Q4, **11% growth** from Q2.
  4. **Permian Basin**: **73%** of total production in Q2, **75%** of Upstream capital for the year.
  5. **U.S. Oil Production Weighting**: Increase to **46%** in Q2.
  6. **Shareholder Returns**: At least **60%** of free cash flow.
  7. **Cost Synergies from Callon Acquisition**: Increased to **$225 million**.
  8. **Debt Reduction Priorities**: Focus on term loan and revolver.
  9. **G&A Run Rate**: **$110 million per quarter** by year-end.
  10. **Alternative Minimum Tax (AMT)**: Costs in the second half  **[APA_3382543_4]** **[APA_3382543_2]** **[APA_3382543_1]** **[APA_3382543_3]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Capital Investment**: Less than **$2 billion**, including **$100 million** for exploration and **$50 million** for Suriname.
  2. **Production**:
     - **U.S. Oil Production**: More than **10% increase** in Q4 2024.
     - **Permian Basin**: Robust growth to offset North Sea declines.
     - **Egypt**: Flat adjusted production.
     - **North Sea**: **20% decrease** due to reduced investment and maintenance.
  3. **Cheniere Gas Sales Contract**: **$100 million** cash flow.
  4. **Decommissioning Costs**: **$60 million** in the Gulf of Mexico.
  5. **Operational Synergies**: **$55 million** from Callon acquisition, **$95 million** in G&A and financing synergies.
  6. **Free Cash Flow**: At least **60%** returned to shareholders  **[APA_3375742_4]** **[APA_3375742_3]** **[APA_3375742_2]** .

7f257c228373e2d444d9bd6037168d5131a240bbf6bf6f9ed6d3f54e05ec4d44

| Name                  | Position                                           | Start Date | Short Bio                                                                                                                                                                                                 |
|-----------------------|----------------------------------------------------|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| John J. Christmann IV | Chief Executive Officer                            | 2024       | John J. Christmann IV has been with APA since **1997** and has served as CEO since **2024**. He previously held roles such as CEO and President from **2015 to 2023**, and EVP and COO for North America  **[0001193125-24-094013_d776369ddef14a.htm:21]** .                                    |
| Stephen J. Riney      | President and Chief Financial Officer              | 2024       | Stephen J. Riney was appointed as President and CFO in **January 2024**. He served as EVP since **February 2015** and CFO since **March 2015**. Before APA, he was CFO for BP Exploration and Production  **[0001193125-24-094013_d776369ddef14a.htm:26]** .                                    |
| D. Clay Bretches      | Executive Vice President, Operations               | 2020       | D. Clay Bretches became EVP of Operations on **January 1, 2020**. He was previously SVP of U.S. Midstream Operations and CEO and President of Altus Midstream Company, a subsidiary of APA  **[0001193125-24-094013_d776369ddef14a.htm:25]** **[0001193125-23-097278_d434054ddef14a.htm:25]** **[0001193125-23-054073_d434054dpre14a.htm:25]** .                                           |
| Tracey K. Henderson   | Executive Vice President, Exploration              | 2023       | Tracey K. Henderson was appointed EVP of Exploration in **January 2023**. She was SVP of Exploration from April 2021 and previously worked at Kosmos Energy as Chief Exploration Officer  **[0001193125-24-094013_d776369ddef14a.htm:25]** **[0001193125-23-097278_d434054ddef14a.htm:25]** **[0001193125-23-054073_d434054dpre14a.htm:25]** .                                              |
| Rebecca A. Hoyt       | Senior Vice President, Chief Accounting Officer    | 2014       | Rebecca A. Hoyt was appointed SVP, Chief Accounting Officer, and Controller in **August 2014**. She has been with APA since 1993 and was previously an audit manager at Arthur Andersen LLP  **[0001193125-24-094013_d776369ddef14a.htm:25]** **[0001193125-23-097278_d434054ddef14a.htm:25]** **[0001193125-23-054073_d434054dpre14a.htm:25]** .                                           |
| P. Anthony Lannie     | Executive Vice President and General Counsel       | 2009       | P. Anthony Lannie became EVP and General Counsel in **August 2009**. He was previously SVP and General Counsel since May 2004 and VP and General Counsel since March 2003  **[0001193125-24-094013_d776369ddef14a.htm:26]** **[0001193125-23-054073_d434054dpre14a.htm:25]** .                                                              |
| Mark D. Maddox        | Executive Vice President, Administration           | 2023       | Mark D. Maddox was appointed EVP of Administration in **January 2023**. He served as SVP of Administration from **April 2020** and held roles such as SVP of Supply Chain and CIO starting in **June 2019**  **[0001193125-24-094013_d776369ddef14a.htm:26]** **[0001193125-23-097278_d434054ddef14a.htm:26]** **[0001193125-23-054073_d434054dpre14a.htm:26]** .                         |
| Matthew R. Bob        | Board Member                                       | 2024       | Matthew R. Bob was elected to the Board on **April 1, 2024**. He has extensive experience in U.S. onshore oil and gas companies and served as an independent director and board chair at Callon Petroleum Company  **[0001193125-24-094013_d776369ddef14a.htm:20]** **[0001193125-24-094013_d776369ddef14a.htm:7]** .                      |
| Anya Weaving          | Board Member                                       | 2024       | Anya Weaving joined the Board in **April 2024**. She has a background in investment banking, having served as Vice Chair and Managing Director in Global Natural Resources at Bank of America Merrill Lynch  **[0001193125-24-094013_d776369ddef14a.htm:24]** .                                |
| Kenneth M. Fisher     | Board Member                                       | 2024       | Kenneth M. Fisher was appointed to the Board on **October 24, 2024**. He serves on the Audit and Cybersecurity Committees and was previously EVP and CFO of ChampionX Corporation  **[0001193125-24-245564_d887695d8k.htm:1]** .                                                          |

abcd388490f608ee080764e02c241918aee6f5bc06ccb50c622ced0670e7b90f

**Annual guidance for FY 2024:**
- **Capital Budget**: $2.75 billion  **[APA_3406619_4]** **[APA_3406619_5]** **[APA_3406619_2]**  (raised from $2.7 billion  **[APA_3396134_1]** **[APA_3396134_4]** **[APA_3396134_2]** )

**Annual guidance for FY 2025:**
- **U.S. Production**: Impact of 20,000 to 25,000 BOE  **[APA_3406619_4]** **[APA_3406619_5]** **[APA_3406619_2]**  (no prior guidance)  
- **North Sea Production**: Down approximately 20% year-over-year  **[APA_3406619_4]** **[APA_3406619_5]** **[APA_3406619_2]**  (no prior guidance)  
- **Rig Count**: 8-rig program in the Permian Basin and 12-rig program in Egypt  **[APA_3406619_4]** **[APA_3406619_5]** **[APA_3406619_2]**  (no prior guidance)  
- **Capital Budget**: $2.2 billion to $2.3 billion for the U.S., Egypt, and North Sea, plus $200 million for Suriname and $100 million for exploration in Alaska  **[APA_3406619_4]** **[APA_3406619_5]** **[APA_3406619_2]**  (no prior guidance)  
- **Cost Reductions**: Targeting significant reductions  **[APA_3406619_4]** **[APA_3406619_5]** **[APA_3406619_2]**  (no prior guidance)

4077a8bbc61e360914024901119e4b51ee42e62432b131f362b8f192466072c3

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP | 2002  **[0001784031-24-000003_apa-20231231.htm:120]**    | Present  | Current auditor   |

fb4d4c10c4ad76ad8b3b01b9d3d73b3b79a3e5f689a7ea3a49d87faa8c127053

712e45690afa950ccae82f5c2d4a7ed4ad0432be887609f265891b88efd13478

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: 2,531 million, up ~10% YoY from 2,308 million  **[0001784031-23-000025_apa-20230930.htm:36]** **[0002040266-24-000003_apa-20240930.htm:4]**   
- U.S. Segment: 1,167 million, up **36%** YoY from 855 million  **[0001784031-23-000025_apa-20230930.htm:36]** **[0002040266-24-000003_apa-20240930.htm:34]**   
- North Sea Segment: 137 million, down **67%** YoY from 419 million  **[0001784031-23-000025_apa-20230930.htm:36]** **[0002040266-24-000003_apa-20240930.htm:34]**   
- Egypt Segment: 754 million, down ~6% YoY from 805 million  **[0001784031-23-000025_apa-20230930.htm:36]** **[0002040266-24-000003_apa-20240930.htm:34]**   
- Operating Income (EBIT): -143 million, down from 1,048 million YoY  **[0001784031-23-000025_apa-20230930.htm:37]** **[0002040266-24-000003_apa-20240930.htm:4]**   
- Net Income: **-223** million, down from 459 million YoY  **[0001784031-23-000025_apa-20230930.htm:4]** **[0002040266-24-000003_apa-20240930.htm:4]**   
- EPS (Diluted): -0.71, down from 1.49 YoY  **[0001784031-23-000025_apa-20230930.htm:4]** **[0002040266-24-000003_apa-20240930.htm:4]**   

c568c4c49360addf612ae3e5735368472e78a17d1f32d2105931c617fdeb4d4a

1f62f805ea910508ede4f6cf2845764d5954e397a7a71b62833592db0c7f4a9f

| Year  | Amount Due (Millions) | Debt Type                  | Interest Rate (%) | % of Total Debt |
|-------|-----------------------|----------------------------|-------------------|-----------------|
| 2024  | 2                     | Finance Lease Obligations  | N/A               | 0.03% = (2 / 6400) * 100 **[0002040266-24-000003_apa-20240930.htm:54]** **[0002040266-24-000003_apa-20240930.htm:21]** |
| 2027  | 1,500                 | 3-Year Tranche Loans       | N/A               | 23.4% = (1500 / 6400) * 100 **[0002040266-24-000003_apa-20240930.htm:55]** **[0002040266-24-000003_apa-20240930.htm:54]** |
| N/A   | 330                   | Commercial Paper Notes     | N/A               | 5.2% = (330 / 6400) * 100 **[0002040266-24-000003_apa-20240930.htm:55]** **[0002040266-24-000003_apa-20240930.htm:22]** |
| N/A   | 4,800                 | Notes and Debentures       | 5.34              | 75.0% = (4800 / 6400) * 100 **[0002040266-24-000003_apa-20240930.htm:63]** **[0002040266-24-000003_apa-20240930.htm:54]** |

120aca75dd6e479611e8f2e34a0e99c81241a91367cd0e4bc0b8f70a355ed05b

2094708a87e717455c9542563fbc42fda8fdadba23da5cf4ce71fddd6db91bce

fe2b32310eac01d30b98366c82cd6d1b06fa11aa66d7317f939caf7d6ddc22fa

1. **Callon Cost Synergies**  
   **Q:** How are you achieving cost synergies after acquiring Callon?  
   **A:** We've increased our expected cost synergies by **50%** and are making significant operational changes. We're adopting fewer wells per section, fewer landing zones, and larger fracs. While Callon used Electric Submersible Pumps (**ESPs**) on **one-third** of new wells and **30%** on gas lift, we typically use **3%** ESPs and **60%** gas lift. We're also self-sourcing operations instead of turnkeying, which reduces costs. These adjustments provide substantial savings.  **[APA_3382543_14]** 

2. **Capital Efficiency Improvements**  
   **Q:** Will you work down DUCs and improve capital efficiency?  
   **A:** Yes, we've added frac capital in the second half of the year to reduce DUCs and enhance capital efficiency. We don't believe carrying a large DUC inventory is efficient. As we implement our changes on the Callon assets, we expect capital productivity to improve, especially in the back half of the year.  **[APA_3382543_9]** 

3. **Debt Reduction and Asset Sales**  
   **Q:** Do you have targets for debt reduction through asset sales?  
   **A:** While we don't have specific targets, we're focusing on selling non-core assets to reduce debt and achieve a solid **BBB** credit rating. The market is strong, and proceeds will go towards debt reduction. We aim to make significant progress within the next couple of years.  **[APA_3382543_9]** 

4. **Permian Growth Outlook**  
   **Q:** Do you expect continued growth in the Permian post-Callon merger?  
   **A:** Yes, the Permian now represents **75%** of our company. We're executing at a high rate and confident in delivering strong momentum as we exit **2024** with a robust fourth quarter. Adding frac capacity helps smooth production profiles and avoids activity lulls, enhancing our growth outlook.  **[APA_3382543_10]** 

5. **Egypt Production Challenges**  
   **Q:** Can you return Egypt to single-digit growth despite rig shortages?  
   **A:** We're rebalancing workover and drilling rigs to drive production. Gas production has been declining, affecting gross BOEs, but we're growing oil production. We'll monitor and adjust throughout the year, considering how Egypt competes with our Permian operations.  **[APA_3382543_10]** 

6. **Egypt Receivables Situation**  
   **Q:** How are Egypt's receivables and financial situation affecting you?  
   **A:** Receivables increased slightly in Q1 **2024**, but remain below last year's average. Egypt is on a positive path; they've floated their currency, received an increased **$8 billion** IMF loan, and secured investments. We expect a large payment in Q2 **2024** and see improving liquidity and international support.  **[APA_3382543_12]** 

7. **Shareholder Returns Commitment**  
   **Q:** Will your shareholder return plans change?  
   **A:** No, we're committed to returning a minimum of **60%** to shareholders and will lean into that during market weakness. The remaining **40%** is allocated for debt reduction. We'll continue to aggressively pursue both shareholder returns and debt reduction.  **[APA_3382543_8]** 

8. **Suriname FID Progress**  
   **Q:** What's the status of Suriname's FID and drilling plans?  
   **A:** We're confident in achieving FID by year-end **2024**. This will dictate drilling timing. While there's nothing pressing for **2025**, we could resume drilling then. We have until **2026** to start the exploration program.  **[APA_3382543_13]** 

9. **Alaska Exploration Results**  
   **Q:** Can you share details on the Alaska King Street discovery?  
   **A:** Preliminary results are encouraging; we've proven a petroleum system with high-quality oil and sand. The positive results at King Street enhance our outlook for the larger Voodoo target. We may redrill both Sockeye and Voodoo prospects in **2025**, but we'll decide this with our partners.  **[APA_3382543_17]** **[APA_3382543_18]** 

951fd3c9d5fa7b391ee33934d378d16af82272d214fd7ffc5b8b0dc541ea63e4

1. **Egypt Production Outlook**  
   **Q:** What is the production outlook for Egypt given recent challenges?  
   **A:** John Christmann stated that due to challenges with ESPs and an imbalance between workover rigs and drilling rigs, APA is guiding to **flat adjusted net production** in Egypt for now.  **[APA_3375742_5]**  They are working to balance operations, with about **13,000 barrels per day** offline needing workovers, which is **8,000 barrels per day** above the usual level.  **[APA_3375742_5]**  The company is unable to increase workover rigs in the short term due to equipment constraints in the country.  **[APA_3375742_10]** **[APA_3375742_13]** 

2. **Alaska Exploration Potential**  
   **Q:** What is the status and potential of the Alaska exploration program?  
   **A:** APA plans to drill **three wells** in Alaska this winter, targeting prospects similar to the **Pikka** play.  **[APA_3375742_6]** **[APA_3375742_11]**  These wells are **3D and amplitude supported** stratigraphic tests in the Brookian play, located between Prudhoe Bay and ANWR.  **[APA_3375742_9]** **[APA_3375742_11]**  While acknowledging the risks, Tracey Henderson mentioned they see materiality in these prospects that warranted exploration.  **[APA_3375742_19]** 

3. **Permian Growth Outlook**  
   **Q:** What are the expectations for Permian production growth this year?  
   **A:** John Christmann indicated that despite a back-end weighted schedule, APA anticipates **10%** growth in Permian oil production in Q4 2024 over Q4 2023.  **[APA_3375742_15]**  They are running **six rigs** in the Permian, and upon integrating Callon's **five rigs**, they will operate **eleven rigs** in total.  **[APA_3375742_8]**  This growth will more than offset declines in the North Sea.  **[APA_3375742_15]** 

4. **Suriname Project Progress**  
   **Q:** What is the current status of the Suriname development project?  
   **A:** APA is working with Total on the FEED study for Suriname's Block 58 and anticipates an FID before year-end **2024**, with first oil expected in **2028**.  **[APA_3375742_14]**  They are also exploring additional potential in Block 58, having relinquished Block 53 to focus on more prospective opportunities.  **[APA_3375742_19]** 

5. **Callon Acquisition Integration**  
   **Q:** How is the integration of Callon Petroleum progressing?  
   **A:** APA expects the acquisition of Callon to close in the second quarter and anticipates integrating their assets smoothly.  **[APA_3375742_8]**  They are looking forward to operating **eleven rigs** in the Permian and see potential synergies, especially in the Delaware Basin.  **[APA_3375742_8]** **[APA_3375742_20]** 

6. **Payment Improvements in Egypt**  
   **Q:** How are collection trends with the Egyptian government?  
   **A:** Steve Riney reported that APA ended the fourth quarter with the lowest past due receivables from EGPC for the year, down **25% to 30%** from peak levels in early second quarter.  **[APA_3375742_16]**  While still elevated, the past due receivables are trending in the right direction.  **[APA_3375742_16]** 

7. **Workover Rig Limitations in Egypt**  
   **Q:** What is causing operational constraints in Egypt?  
   **A:** APA faces limitations due to a shortage of workover rigs in Egypt, with only **20** rigs available.  **[APA_3375742_10]** **[APA_3375742_13]**  Despite tripling drilling rigs from **5 to 15-18**, they could only double workover rigs, creating an imbalance.  **[APA_3375742_13]**  There are no near-term options to increase workover rigs due to equipment constraints in the country.  **[APA_3375742_10]** 

8. **Potential Headcount Adjustments**  
   **Q:** Will there be adjustments to APA's workforce due to activity levels?  
   **A:** John Christmann mentioned that APA is always looking to rightsize the organization with activity levels.  **[APA_3375742_20]**  They have undertaken workforce reductions in the North Sea and may adjust staff in response to lower activity levels, while excited about integrating Callon's assets.  **[APA_3375742_20]** 

9. **Block 53 Relinquishment in Suriname**  
   **Q:** Why did APA relinquish Block 53 in Suriname?  
   **A:** APA relinquished most of Block 53 to focus on the more prospective Block 58, as part of strategic portfolio management and continuous high-grading.  **[APA_3375742_19]**  They see more exploration upside in Block 58.  **[APA_3375742_19]** 

10. **Abandonment Cost Impact**  
    **Q:** How are abandonment costs impacting cash flow?  
    **A:** When asked about the impact of abandonment costs, specifically relating to ARO for Fieldwood, Steve Riney noted that these costs do not go through the capital program and are booked as liabilities on decommissioning obligations.  **[APA_3375742_17]**  Detailed discussion was deferred to offline.  **[APA_3375742_17]** **[APA_3375742_18]** 

92aaeec13c41924b432e6fe9a4379830ade15ad5f1688185584267738fd6a1a4

- **APA faces significant asset retirement obligations (AROs) in the North Sea totaling $1.2 billion after-tax**, with approximately half to be incurred by 2030, which could strain cash flows and impact financial flexibility.  **[APA_3406619_7]**
- **Production in the North Sea is set to cease by December 31, 2029**, due to new emissions regulations and the impact of the Energy Profits Levy, potentially reducing future revenues.  **[APA_3406619_7]**
- **Gas production in the Caser field in Egypt is on decline**, and it is uncertain if new programs can offset this decline, which may affect APA's overall production and revenues in Egypt.  **[APA_3406619_18]**

3466099d66c5e6f61c68da7c0611b14046a8d1ca28158a803d2273b6cdb8bfc2

- **APA anticipates strong Permian oil production growth of over 10% in Q4 2024 compared to Q4 2023**, driven by continued outperformance in the Midland and Delaware Basins, which will more than offset declines in the North Sea.  **[APA_3375742_15]**
- **Successful integration of Callon Petroleum's assets** is expected to enhance APA's operational efficiency and growth in the Permian Basin, starting with **11 rigs upon closing** and leveraging APA's proven capabilities.  **[APA_3375742_8]**
- **Positive developments in Suriname**, with a **Final Investment Decision (FID) expected before the end of 2024** and **first oil anticipated in 2028**, which could significantly boost future production and margins.  **[APA_3375742_14]**

d6dedb8ae087db4a71d8535ce3e8a7d5471ffbe396b37d1fc4be8436b7c8fb27

1. **Egypt Gas Program Impact**  
   **Q:** How will the Egypt gas agreement affect cash flow?  
   **A:** The new gas price agreement in Egypt allows us to earn higher prices on **incremental gas volumes**, aligning gas exploration economics with oil.  **[APA_3406619_6]**  We can't disclose specifics yet, but you'll see the benefits in future results, and we'll provide more details in February.  **[APA_3406619_6]** 

2. **North Sea ARO and Cash Flow**  
   **Q:** What's the impact of North Sea decommissioning on cash flow?  
   **A:** We have a net liability of **$1.2 billion** for North Sea asset retirement obligations.  **[APA_3406619_7]**  About **50%** of this will be spent by 2030, starting with less than **$100 million** annually, increasing over time.  **[APA_3406619_7]**  This spend won't show up as capital but will affect free cash flow.  **[APA_3406619_7]** 

3. **Cash Return Timing**  
   **Q:** Is the lower cash return this quarter just timing?  
   **A:** Yes, it's a timing issue.  **[APA_3406619_9]**  We had material things in the works that limited market activities, but we remain committed to our cash return strategy.  **[APA_3406619_9]** 

4. **Cost Reductions and Synergies**  
   **Q:** How are you achieving lower costs and synergies?  
   **A:** We're realizing significant cost reductions from the Callon acquisition, exceeding the **$90 million** G&A synergy target.  **[APA_3406619_11]**  We've cut almost **$1 million per well** in well costs through supply chain efficiencies.  **[APA_3406619_11]** 

5. **Sustaining Production with Fewer Rigs**  
   **Q:** Can you sustain production with reduced rig count?  
   **A:** Yes, we plan to sustain Permian oil production at around **130,000 barrels per day** with **8 rigs**, down from 9.  **[APA_3406619_6]**  In Egypt, 12 rigs (11 oil, 1 gas) will broadly sustain production.  **[APA_3406619_16]** 

6. **Permian Gas Pricing Outlook**  
   **Q:** What's the outlook for Permian gas pricing?  
   **A:** Current price extremes are due to temporary pipeline maintenance.  **[APA_3406619_9]**  We expect improvements as maintenance concludes, and with additional takeaway capacity like Matterhorn coming online.  **[APA_3406619_9]** 

7. **Portfolio Strategy and Growth**  
   **Q:** Do you need another asset given North Sea decline?  
   **A:** Our portfolio is strong with the Permian and Egypt as core assets, and Suriname production starting in **2028** adds significant growth.  **[APA_3406619_19]**  We're also exploring in Alaska.  **[APA_3406619_19]** 

8. **Suriname Development**  
   **Q:** What's the key takeaway from the Suriname project?  
   **A:** The Suriname project is real and progressing, with visibility to volumes in **2028**.  **[APA_3406619_20]**  The slide illustrates the development, including the FPSO placement and future tiebacks.  **[APA_3406619_20]** 

9. **Alaska Exploration Outlook**  
   **Q:** How is the regulatory outlook in Alaska?  
   **A:** Our activities are on **state lands**, minimizing federal regulatory hurdles.  **[APA_3406619_12]**  We're excited about the upcoming exploration well spudding early next year.  **[APA_3406619_12]** 

10. **Gas Marketing Benefits**  
    **Q:** Will gas marketing benefits continue next year?  
    **A:** It depends on Waha gas prices and spreads to the Gulf Coast.  **[APA_3406619_25]**  Volatility can create significant opportunities, as seen this year when prices went negative, enhancing our margins.  **[APA_3406619_25]** 

d6df70da81201dc9c40f912cec1199d9d5149cfc83833bd48d736f3c11576843

- **Strong Operational Performance in Key Areas:** In Egypt, APA's strategy to reduce the rig count from **16 rigs in the first half of the year to 11 rigs in the second half** has freed up resources for impactful workover projects, leading to production exceeding expectations and significant capital efficiency improvements.  **[APA_3396134_7]** **[APA_3396134_13]**
- **Positive Developments in Exploration Projects:** APA remains on track for a **Final Investment Decision (FID) in Suriname by year-end 2024** with first oil expected in 2028, signaling promising future growth. Additionally, the **King Street discovery in Alaska** serves as proof of concept, and APA is excited about the exploration potential in the region.  **[APA_3396134_15]** **[APA_3396134_19]**
- **Successful Integration of the Callon Acquisition:** APA has increased its estimate of annual synergies from the Callon acquisition to **$250 million**, with operational synergies contributing **$120 million annually**. This includes capital savings and improved well economics, enhancing free cash flow and shareholder returns.  **[APA_3396134_3]** **[APA_3396134_7]** **[APA_3396134_10]**

91eb1f52a9e81fa126c353432aa9ebcf6c34b17db267a5fffc751cddc7d6ffaf

- **Uncertainty about maintaining Egypt production levels with reduced rig count**: APA is reducing its rig count in Egypt from **16 rigs** in the first half of the year to **11 rigs** in the second half. Management admits that it's "**early to tell**" if **11 rigs is the right number** to maintain volumes, indicating potential risk to production levels.  **[APA_3396134_7]** ,  **[APA_3396134_24]**
- **Exposure to low gas prices in the Permian leading to potential increased curtailment**: The company acknowledges it can curtail up to **twice** the current amount of gas production if prices remain low or go negative, which could negatively impact volumes and revenues. Additionally, they have firm transport obligations requiring payment even if capacity is unused.  **[APA_3396134_12]**
- **Potential need to strengthen the balance sheet may limit shareholder returns**: Following the recent acquisition, management recognizes a "**continued need for balance sheet strengthening**," which may impact future shareholder returns, despite previously returning more than **60% of free cash flow** to shareholders.  **[APA_3396134_10]**

b61796c06b1d373f3dcb9769bc1f2504df952e04d9d20b89950f2e51cfceb48f

- **Potential for Increased Gas Production and Cash Flow in Egypt:** APA has reached an agreement to increase the contractual natural gas price on incremental volumes in Egypt, making gas exploration and development economically competitive with oil. They have added **one rig** focused on gas exploration, tapping into significant underexplored gas potential with existing infrastructure in place. This could lead to increased gas production and enhanced free cash flow.  **[APA_3406619_6]** ,  **[APA_3406619_16]**
- **Significant Cost Reductions and Synergies from Callon Acquisition:** APA has effectively integrated the Callon assets and is achieving cost synergies beyond initial expectations. They have eliminated the full Callon G&A cost and are targeting a **10% to 15% reduction** in per unit LOE, G&A, GPT, and interest costs in 2025. This enhances operational efficiency and free cash flow generation.  **[APA_3406619_11]** ,  **[APA_3406619_3]**
- **Ability to Sustain Production with Lower Capital Expenditure in the Permian:** APA plans to sustain Permian oil production at around **130,000 barrels per day** with a reduced rig count of **8 rigs** (down from 9), reflecting operational efficiencies and cost-effectiveness. Despite a softer oil price environment, they are focused on maintaining production volumes while generating free cash flow.  **[APA_3406619_16]** ,  **[APA_3406619_21]**

cdaf7ca7d0e7c330a6141fe005de44ba056301a880bd1b38d3e3d4bb6de0a071

- **Weak natural gas prices at the Waha hub are leading to substantial production curtailments in the Permian Basin**, with an estimated impact of **50 million cubic feet per day of gas and 5,000 barrels per day of NGLs** in the second quarter.  **[APA_3382543_7]**  This reliance on stronger gas prices affects the competitiveness of gas projects compared to oil projects.
- **Increased debt levels due to the Callon acquisition require the company to make progress on debt reduction**, potentially limiting flexibility in capital allocation and shareholder returns.  **[APA_3382543_7]**  The company is targeting **non-core asset sales** to reduce debt, which could impact future operations.
- **Challenges in Egypt with a backlog of offline production—approximately 12,000 barrels per day temporarily offline and waiting on workover—are expected to take longer to resolve** due to an insufficient ratio of workover rigs to drilling rigs.  **[APA_3382543_8]**  Additionally, **gross oil volumes in Egypt declined from the fourth to the first quarter**, influenced by reduced drilling activity and completion timing.  **[APA_3382543_13]**

b12a0108ce53fb4ed6a29b300f737d420c3cd37deae7574824f31d800ec7ba27

- **Operational constraints in Egypt are limiting production growth.** The company faces limited availability of workover rigs, which is affecting their ability to perform recompletions and maintenance. There are no near-term options to increase workover rig capacity, hampering production improvements in Egypt.  **[APA_3375742_10]**
- **Elevated past due receivables from Egypt are affecting cash flow.** The company has acknowledged that past due receivables from the Egyptian government are still elevated, despite some improvement, indicating potential ongoing payment collection issues.  **[APA_3375742_16]**
- **Significant investment in high-risk exploration projects with uncertain outcomes.** The company is investing in exploration in Alaska and Suriname, which are high-risk ventures with long time horizons before potential production, leading to delayed returns on investment. First oil from Suriname is not expected until 2028, and the Alaska exploration wells are risky with uncertain results.  **[APA_3375742_14]** **[APA_3375742_19]**

2af81286ae7423ff600f3dab3e8c3c4e6e8ac9d4d987f367b94267f235b1141c

- **APA Corp's Permian Basin production now makes up approximately 75% of the company post the Callon acquisition**, and they expect to exit 2024 with a **very strong fourth quarter**, providing strong momentum into 2025.  **[APA_3382543_11]**
- **APA has increased its expected annual cost synergies from the Callon acquisition by 50%, from $150 million to $225 million**, and is making excellent progress in realizing these cost reductions.  **[APA_3382543_6]**
- **The company remains committed to returning at least 60% of free cash flow to shareholders** through dividends and share repurchases, while also focusing on debt reduction.  **[APA_3382543_8]**

c8df5586dfb4b03764fb57896079eda494bc551e65be82b2b624644b2d0c4b34

1. **Suriname Development**  
   **Q:** What's the plan for Suriname activity and spending in 2025?  
   **A:** CEO John Christmann reiterated confidence in taking FID on the Suriname project by year-end **2024**, with first oil expected by **2028**. The teams are working well together, and they are aiming to accelerate the timeline.  **[APA_3396134_15]** 

2. **Callon Integration Synergies**  
   **Q:** How is the integration of Callon progressing and expected synergies?  
   **A:** The integration is going extremely well, with early indications of **$150 million** in annualized synergies. They expect to drill wells on Callon acreage for about **$1 million less per well** due to improved drilling efficiencies and supply chain benefits. The first Apache-planned wells on Callon acreage are being spud, and they are excited to see the results.  **[APA_3396134_9]** **[APA_3396134_13]** **[APA_3396134_25]** 

3. **Egypt Production and Payments**  
   **Q:** Can Egypt maintain oil production with reduced rigs, and what's the receivable situation?  
   **A:** By reducing drilling rigs from **16 to 11**, they are freeing up workover rigs to perform impactful waterflood initiatives and reduce the backlog of wells needing recompletion. This should help maintain production levels, though it's early to tell if **11 rigs** are sufficient to hold volumes flat. On receivables, they have been receiving payments, and discussions with the Egyptian government are positive, with commitments to pay off oil companies.  **[APA_3396134_7]** **[APA_3396134_14]** **[APA_3396134_20]** **[APA_3396134_21]** 

4. **2025 Spending Outlook**  
   **Q:** How should we think about spending in 2025, including CapEx outside of base D&C?  
   **A:** While it's early in the planning process, CFO Stephen Riney mentioned that the current run rate excluding exploration is around **$675 million per quarter**. However, this is not necessarily indicative of 2025 spending. They have significant flexibility given the strong growth in the Permian and will provide more details in November and February.  **[APA_3396134_23]** **[APA_3396134_24]** 

5. **Permian Inventory Depth**  
   **Q:** What is the current view on Permian inventory depth post-Callon acquisition?  
   **A:** They are comfortable with inventory through the end of the decade, consisting of high-quality, long-lateral locations. The Callon acquisition adds similar duration to their existing inventory, and potential productivity improvements could extend inventory beyond the end of the decade. They remain content with their position and are not actively seeking further consolidation.  **[APA_3396134_6]** **[APA_3396134_9]** **[APA_3396134_15]** 

6. **Midstream Earnings and Waha Differentials**  
   **Q:** How do Waha differentials impact midstream earnings, and what's the normalized outlook?  
   **A:** The company's financials have benefited from weak Waha prices due to their ability to arbitrage gas to the Gulf Coast. In a balanced market, differentials between Waha and the Gulf Coast would be near zero, and they would make money primarily on minor pricing advantages and transport efficiencies.  **[APA_3396134_11]** **[APA_3396134_24]** 

7. **Asset Sales**  
   **Q:** Are there plans for further asset sales, such as the Central Basin Platform?  
   **A:** While they typically wait to announce property sales, they are considering divesting non-core assets where they are not investing capital, potentially including the Central Basin Platform.  **[APA_3396134_10]** 

8. **Alaska Drilling Plans**  
   **Q:** What's the plan for Alaska drilling and spending?  
   **A:** They are excited about the Alaska King Street discovery, which proves their play concept. They plan to conduct more drilling in the near future but are still working through plans with a partner, so no specific details on the number of wells or spending are available yet.  **[APA_3396134_18]** **[APA_3396134_26]** 

9. **Egypt Gas Opportunities**  
   **Q:** Are there opportunities for additional gas developments in Egypt?  
   **A:** They are discussing potential gas projects in the Western Desert with the Egyptian government. Historically focused on oil, they now see opportunities for future gas exploration that could be economically attractive with higher gas prices.  **[APA_3396134_21]** 

10. **Permian Productivity Improvements**  
    **Q:** Will productivity improvements on Callon acreage show in 30-day IPs or longer term?  
    **A:** They anticipate that changes in spacing and completion design, including pumping more fluid and wider spacing, could lead to increases in initial production rates as well as better long-term performance. They need to drill and evaluate wells to see the results.  **[APA_3396134_22]** 

932ac1edbc17f9c8928f42c2416c2ecb4cc55ca6330928d27bad044a34cb4c41

APA Corp (US) (APA)

Financials